Definition
FCRA stands for the Foreign Contribution (Regulation) Act. It is the law that regulates how eligible individuals and organisations in India may receive and use foreign contributions.
Exam-ready points
- It is administered by the Ministry of Home Affairs.
- It focuses on registration or prior permission, designated receipt channels, disclosure and audited reporting.
- It is linked to concerns such as transparency, accountability, sovereignty, public order and national security.
- The current central law is FCRA, 2010, which replaced the earlier 1976 law.
- Questions often test whether you understand that FCRA is a regulatory framework, not just a slogan about banning foreign funds.
Common mistakes
- Do not write that FCRA applies only to NGOs; the law covers a wider set of eligible entities and restrictions.
- Do not confuse foreign contribution regulation with foreign trade regulation.
- Do not describe it as a blanket prohibition. A better answer explains regulation, eligibility, reporting and restricted categories.
Difficulty
Foundation
Revision time
About 8 minutes
Self-check questions
- What is the full form of FCRA?
- Which ministry administers FCRA?
- Why is FCRA discussed in the context of transparency and sovereignty?